Chambers want Central bank to rein in commercial banks

Ali was addressing a seminar hosted by the Chamber titled- “Banking and Finance made simple” at the Chamber’s Camden Road, Couva conference hall on Tuesday.

Saying it was not the Chamber’s intention to “discredit anyone”, however pointed out that it was the consumer’s right to be treated justly and fairly.

“We are not pleased with the present rate of interest being offered on deposits at commercial banks,” Ali said, adding, “we are calling for the Central Bank Act to be amended to allow the Central Bank governor greater authority to regulate the commercial banking sector.” And pointing out that he had the support of several other business chambers including the Penal/ Debe Chamber of Commerce and the Siparia Business Association, Ali said: “We are calling on the politicians to amend the Central Bank Act so consumers can get the advantage of protection.” “This is not a Chamber issue but rather this is a national issue,” he said. He then issued a call for the nation’s indigenous bank, First Citizens Bank to “do the patriotic thing” and eliminate the “nonsensical charges which now exist in commercial banks.” Ali also called for the Ministry of Agriculture, Lands and Fisheries to initiate the necessary legislation to make the ADB into a full-fledged commercial bank saying this would stimulate the agricultural sector.

Also addressing the seminar was Independent Senator David Small who described the local banking and financial sector as “horribly complicated” saying banks had “pushed the limits of what they can do” while the citizenry had not “pushed back.” Meanwhile, former prime minister Basdeo Panday, who also addressed the seminar, described the fees charged by the banks as “unconscionable” as it laid tremendous stress on the accounts of poor people.

“I have since written to the Minister of Finance (copied the Governor of the Central Bank) calling upon them to intervene in this matter by enacting and/ or enforcing the necessary laws and regulations to bring the Banks under control,” he said.